- EURUSD daily hammer + positioning points to squeeze potential.
- EURJPY ugly below 136.20, EURCAD pretty above 1.4660.
- August forex seasonality in QE era supports a stronger US Dollar.
Economic data in the Euro-Zone has started to steady in recent weeks, though remains in a rut. The Citi Economic Surprise Index has eased back towards the yearly low set on July 21 of -43.3, and is currently -31.6.
Yet even as the European Central Bank meets on today for their August policy meeting, it is unlikely that an optimistic tone regarding the region’s growth prospects is sounded too loudly: inflation stubbornly remains on a downward trajectory.
Soft inflation expectations are dogging the Euro in the near-term, with the July Euro-Zone CPI Estimate reported at only +0.4% y/y on Wednesday.
Given the state of affairs in the region it is likely that the ECB meeting this week offers no clear path forward. The ECB meeting today, then, absent of any real action, will at least bring along with it a rather dovish slant from Governor Mario Draghi at the post-meeting press conference. The specter of QE will be fleshed out, but without any specific details that would indicate QE is due in the immediate future.
A lack of heightened dovishness will probably provoke a short-term squeeze in the Euro, where non-commercials/speculators have increased net-short positions (108K contracts) to their highest levels since the week ended August 21, 2012 (124K contracts).
Read more: Most EUR-crosses in Trouble if EUR/JPY Under 136.20- Which One Isn’t?
Investing NewsChina’s forex reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan
ForexAmid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.